ASX Growth Shares to Buy Now

Investors now have a compelling opportunity on their hands to consider the following ASX Growth stocks at valuations that do not fully reflect their competitive advantages and promising future.

Xero Limited (ASX: XRO)

Xero Limited (ASX: XRO) has a capital light SaaS model which generates recurring subscription revenue from accounting, payroll and payments services which are delivered through a unified cloud platform.

Operating revenue in H1 FY26 increased 20% year-on-year to NZ$1.19 billion while adjusted EBITDA reached NZ$351 million which reflects a strong 29.4% margin supported by subscriber growth to 4.59 million.

Gross margin remained solid at 88.5% and free cash flow climbed to NZ$321 million with a 26.9% margin which shows the company’s ability to convert revenue into cash while ARPU rose to NZ$49.63.

The business model has high switching costs as small businesses place invoicing, payroll, payments, reporting and tax workflows inside the platform which makes migration costly and disruptive once it becomes part of daily operations.

Concerns around AI disruption have pushed the share price down about 30% year-to-date which appears exaggerated and presents a strong long-term opportunity for growth focused investors.

Life360, Inc. (ASX: 360)

Life360, Inc. (ASX: 360) has emerged as a compelling ASX growth share even though the stock has declined almost 30% year-to-date which may have created an attractive entry point for investors.

The company reported record Q4 2025 operational performance as Monthly Active Users reached 95.8 million which represents the strongest Q4 MAU additions in its history while full year 2025 net additions were 16.2 million reflecting 20% year-on-year growth and international MAUs grew 26% year-on- year.

Paying Circles reached 2.8 million in Q4 2025 with full year net additions of 576 thousand which marks the highest annual subscriber growth on record.

Life360 expects full year 2025 revenue of US$486 to US$489 million which represents around 31% to 32% year-on-year growth alongside adjusted EBITDA of US$87 to US$92 million at an 18% to 19% margin which exceeds prior guidance and management expects approximately 20% MAU growth in 2026.

The business model benefits from strong network effects and switching costs as families depend on the platform for real time location sharing, crash detection, safe driver reports and connected device tracking.

TechnologyOne Limited (ASX: TNE)

TechnologyOne Limited (ASX: TNE) is one of the highest quality software growth stocks on the ASX even though the share price has declined almost 24% year-to-date.

The company reported record Annual Recurring Revenue of $554.6 million for FY25 which was up 18% year-on year and crossed the $500 million milestone ahead of schedule.

Profit before tax increased 19% to $181.5 million while SaaS and recurring revenue rose 19% to $553.2 million which highlights the strength of its capital light subscription model.

Free cash flow rose 55% to $184.2 million with a free cash flow margin of 41% and places TechnologyOne among the top quartile global SaaS peers.

With a long-term goal of more than $1 billion ARR by FY30 and margin expansion targets of above 35% profit before tax margins the recent share price weakness appears disconnected from the company’s operational performance which makes it a growth stock worth serious consideration.

(Source: Company Reports)